Okay, I had to take up that challenge. I have searched every source that we have at LAPL (short story index back to 1949, in house extensive short story index, card catalog, even the Internet) and can find no short story with that title. I did find a 1985 documentary film by that title but nothing else. Also, if the story was written in 1968, it had to be very new when the dream curse aired on DS. Didn't the writers of DS mostly take from stuff that would have been in public domain? Much as I admire KLS, I do have to say that she has been known to get her facts wrong so maybe this information is not entirely correct? Luciaphil, you're good at this, maybe you can find a short story called "Dream Deceivers."
Thank you, Bette, but I'm not having much better luck than you are. Nothing in WorldCat. Nothing in the Short Story indexes we have via the public library here. Can't find it via a Google search (although lots of hits for the film you mentioned. And nothing in any of the pertinent databases at my school (and God knows, we have a lot of databases).
Do we know that it's a short story for certain?
I don't know that they would have worried too much about copyright violation for a literary work--I know the soaps today still do flagrant ripoffs of stories (AW even ripped off Damon Runyon, who would still have been under copyright protection) and I have yet to see any credit given to the original sources.
Wondering if this is a story that would have been published in a pulp magazine, which would explain why we can't find it now . . .
Luciaphil